Hundreds of Israeli restaurants have informed dining solutions company 10bis that their services will no longer be required, after being told that commissions are being raised from May.
10bis operates in two ways as a discount loyalty card and food deliveries. The commission on the cards will rise from 6% to 7.5% from May and for food deliveries from 10% to 12%. These expenses do not include the payment by the restaurant to the courier who delivers the food.
In a letter to restauranteurs, 10bis justified the fee hike as due to general price rises in the economy. Restauranteurs do not accept this as a valid reason and argue that 10bis is cynically exploiting its market strength.
Avi Haimov, who owns two Schnitzel Point outlets in Tel Aviv, is one of the leaders of the protest against 10bis. In a letter to 10bis he wrote, "It is inconceivable that you have chosen to take another bite out of our profits, which are already disappearing with all the expenses that surround us. You are seizing our livelihood without half a reason that justifies raising prices."
He added, "It shouldn't be that while we are sweating and fighting to halt the rise in prices and absorbing most of the inevitable price hikes you sit in your office with your air-conditioning, coffee and cakes and just press a button and get richer by 25% just because you feel like you can get away with it."
Haimov said that high-tech had taken control of low-tech.
10bis said, "We are in direct and daily contact with all the restaurants and together we will continue to give the best value for our customers. Revising the commercial terms stems from a rise in operational prices and developing manpower to expand the company's service teams."
It remains to be seen whether 10bis's rivals Wolt and Cibus also raise prices.
Published by Globes, Israel business news - en.globes.co.il - on March 24, 2022.
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